WorksheetsPre-License: Test Your Knowledge & Understanding
Total questions: 75
Worksheet time: 56mins
The Georgia Real Estate Commission may do all the following except:
Examine the trust accounts of any real estate licensee
Determine fees for license renewals
Take over a real estate transaction when the licensee is in violation of law or rules
Sanction a licensee
In 1994, Fred built a six-story building. Several years later, a zoning ordinance was passed banning buildings six stories or higher in the area. This is an example of:
a nonconforming use
a situation in which the building would have to be demolished
a situation in which the top floor would have to be closed
a variance
For a property that borders a non-navigable waterway, which of the following statements is true as it relates to riparian water rights?
the boundary line for the property extends to the center of the waterway
the boundary of the property extends to the edge of the water
the boundary of the property extends to the high tide or watermark
the property owner is seen to own to the center of the waterway, but only the land, not the water itself
If a Georgia licensee is acting as a dual agent, which of the following is NOT true?
The licensee is representing the buyer and seller
The contract must disclose who is paying the licensee
This disclosure must be made no later than the first offer to sell, buy, lease or exchange real property
This is an illegal transaction
Tom died owning a farm as a joint tenant with his son, Jerry. Tom had personal debt of over $50,000 and no assets other than his share of the farm. Which of the following is true?
Tom's creditors can take the farm
Jerry is liable for the debts, since he is the heir
The debt will be paid out of the estate before Jerry takes over the ownership
Jerry owns the farm and has no obligation for Tom's debts
Jane purchased a house from John and after the closing, she learns that John lied when he said the electrical system worked properly. Based on the fraudulence of John, which is true regarding the contract?
It remains valid
It is voidable
It is unenforceable
It is void
A high-rise office building has a gross income of $300,000 every half year. Annual expenses are 38% of the gross income. What is the approximate dollar amount of net income?
$114,000
$186,000
$228,000
$372,000
A tenant in common may transfer his or her interest under which of the following circumstances?
Only with the consent of the other tenants in common
At any time, without consent, even under protest
Only at the expiration os the lease
Only for valuable consideration
You chartered a corporation and bought an apartment building. You then sold stock to selective individuals who were given a proprietary lease which allowed them to occupy different units. You have a:
Cooperative
Condominium
Real estate investment trust (REIT)
Timeshare
Georgia requires every salesperson, within one year of being licensed, to complete a post-license course of at least how many hours?
20-hour
100-hour
35-hour
25-hour
The purchase price on a property is $183,500 and the buyer is assuming the seller's loan with a balance of $24,742. What is the transfer tax?
$183.50
$158.80
$158.76
Cannot calculate
In a lien theory state, a mortgage serves to do what?
not used if the loan is under $50,000
create an agreement only if used by a mortgage company
create a lien on the property
secure a promissory note
Jack, Jill, and Andre own property as joint tenants. Jack dies, then Jill sells her interest to Valerie. The property is now owned by:
Andre, Valerie, and Jack's widow and his son, Jake as joint tenants
Valerie and Andre are joint tenants
Andre and Valerie as tenants in common, each with one-half interest
Andre, Valerie and Jack's wife
Members of the Georgia Real Estate Commission are:
Appointed by the Governor of Georgia
Selected by licensed real estate professionals
Selected by the mayor in the town where the Commission is located
Voted in by ballot by Georgia residents
A buyer agrees to pay $150,000 at 12% interest over 10 years to a seller who has a $100,000 first mortgage loan at 10% interest. If the seller gives the buyer a deed, what type of financing device is MOST likely involved?
Purchase money mortgage
Assumption of the loan
Wraparound mortgage loan
Conventional mortgage loan
If you have a Georgia real estate license, and are faced with a disciplinary hearing because of something the Commission discovered, you have the right to which of the following?
Insist the Commission pay all your legal fees
Judicial review of your case in the event the Commission suspends or revokes your license
Ask the Commission to hire an attorney on your behalf
Refuse to provide the Commission with any paperwork
What is the first month's interest payment on a $25,000, 30 year, 9% loan if the monthly payment is $201.00?
$100.50
$187.50
$175
$34.50
If a deed is signed by the grantor on Saturday, but not delivered to the grantee until Sunday, which of the following is true?
The deed is invalid
The deed is not acceptable for recordation
The deed is voidable
The deed is effective to transfer title
A buyer who has submitted a $10,000 earnest money deposit with an offer for $200,000 for a property decides to default. The seller may keep the $10,000 as:
Punitive damages
Consequential damages
Special damages
Liquidated damages
If the qualifying broker of a Georgia corporation, partnership or limited liability company resigns, dies or is discharged, the entity has how many days to find a new qualifying broker?
365
60
15
30
When an easement appurtenant exists between two parcels of land that are separately owned,
the dominant estate has use of this easement only for driving to and from the property
the servient tenement must have created the easement in writing
the dominant estate is benefitted by the easement
the servient tenement may revoke the use of the easement by giving proper notice
The annual property tax bill is $1,776 and the annual hazard insurance premium is $696. The lender requires 10 months of taxes and 2 months of insurance to set up the escrow account? How much does the borrower to pay to set up the account?
$2,472
$1,538
$1,776
$1,596
A quiet title action most nearly means:
to obtain title by adverse possession
to color title and enhance the buyer's claim of ownership
to mortgage the property without reocording the deed
to settle a cloud on the title by court action
Bob, unlicensed, hires Sally to sell his property under an exclusive agency brokerage agreement. While Sally is away, Bob shows the property to different buyers, quotes prices and accepts an offer from one of them. His actions:
place Sally in jeopardy, since Bob is acting as a licensee without a license
will invalidate the sale
were entirely proper
have made Bob subject to disciplinary by the Georgia Real Estate Commission
Adam Jones is a Georgia broker who let his license lapse three years ago. In addition to paying the renewal fee, he must do what?
Complete the Community Association Managers prelicense course within six months
Complete the Salespersons prelicense course within a year of paying the renewal fee
Complete the Broker's state licensing exam until he passes it
Complete the Brokers prelicense course within 3 months
If a buyer obtains a mortgage for $50,000 with a total of four points, how much will be charged by the lender for the points?
$6,000
$200
$2,000
$600
In which of the following situations does the buyer hold equitable title?
pending sale and when the title reveals no defects
when legal title is obtained and a land contract
contract for deed and a pending sale
net sale and bond for deed
Which of the following is true concerning recording a deed?
a forged deed is made valid by recording
a delivered deed is not valid until it is recorded
a deed must be signed by grantor and grantee in order to be recorded
recording is not needed in order to make a deed valid
Of the following loans, which ones do the lender set the interest for loans?
90% and 95% conventional loans
FHA loan
VA loan
all of the above
The term "marketable title" means:
the title has no defects
the title appears to be reasonably free of unacceptable defects
the seller can transfer interest by deed
the abstract certified to date can be prepared
Contracts issued to potential buyers or sellers in Georgia must:
Not include information about deposits or possible fees that may result if the transaction is complete
Contain a start and finish date, be in compliance with Georgia law, and disclose any conflicts of interest
Tell the buyer or seller what the licensee thinks they need to know
Be approved in a Georgia court
Which of the following formulas show how value is determined using the income approach?
gross income ÷ capitalization rate = value
net income ÷ capitalization rate = value
effective gross income ÷ capitalization rate = value
none of the above
If a Georgia licensee mishandles funds in a trust account and receives a judgment as a result, they shall
Be fined $25,000
Be required to get a surety bond before they collect any funds from clients in the future
Lose their real estate license permanently
Be responsible for repayment of any claims paid by the recovery fund along with interest and penalties
A buyer is purchasing a home for $179,420 with an FHA loan. What is the intangibles tax?
$538.50
$519.42
$520.50
Not enough information to calculate
In the income approach to value, effective gross income can best be described as:
gross income less taxes, maintenance, and insurance
gross income less taxes, maintenance, insurance, and vacancy loss
gross income less taxes, maintenance, insurance, vacancy loss, and collection issues
gross income less vacancy loss, and collection issues
Sallie, who is not a licensee, works for Broker Amanda and performs administrative duties. What duties are Sallie permitted to perform under Georgia's real estate law?
Sallie can write real estate contracts.
Sallie can answer phones and make appointments.
Sallie can show houses to clients.
Sallie can represent the buyer and seller as a dual agent.
When does legal title to real property pass from the seller to the buyer?
on the date of recording the deed
when the closing statement has been signed
when the deed is placed in escrow
when the deed is delivered to and accepted by the buyer
Marcus agrees to build a house and sell it to Teresa in 120 days. Teresa agrees to pay Marcus' price within 60 days of completion. Before the house is completed, this is what type of contract?
Executory contract
Implied contract
Voidable contract
Executed contract
Melissa and Becky orally enter into a two-year lease. If Melissa defaults, Becky may or may not bring a court action on the lease because:
the parol evidence rule prohibits bringing action to enforce oral leases of two years in length
the statue of frauds prohibits bringing action to enforce oral leases of two years in length
two year lease need not be in writing to be enforced in a court action
the statute of limitations does not apply to oral leases
The Georgia Real Estate Commission may request a court to issue a cease and desist order when:
Someone participates in a transaction by falsely representing they are licensed
Buys a house without using a broker for the purchase
Sells a house without using a broker for the sale
They believe a real estate transaction should not have been completed
A "due on sale" clause is also known as:
An alienation clause
An acceleration clause
An assignment clause
A lender's privilege clause
To calculate the ad valorem taxes on a property, you would:
divide the assessed valuation by the tax rate in mills
multiply the assessed valuation by the tax rate in mills
multiply the sale price by the tax rate in mills
divide the sale price by the tax rate in mills
A landlord receives rent at the beginning of the month. The property is sold ten days later. To prorate the rent at the closing:
credit the buyer
credit the seller
both a and b
neither a nor b
In the covenant of seizin:
the mortgagee states that he is foreclosing
the lessor states that the lessee has not abided by the lease agreement
the grantor states that he owns the property being transferred
the lessee states that he is being evicted
The sales price is $254,000 and the buyer is getting a 95% loan. The lender has quoted a rate of 0.48% annually for private mortgage insurance. The buyer's monthly PMI payment would be:
$96.40
$96.52
$115.82
$1158.24
What is required prior to advertising property for rent, sale, lease or exchange in Georgia?
Written permission to advertise from the broker
Pictures of the property
Written consent from the owner
An earnest money deposit
Negative amortization occurs in what type of financing?
Reverse annuity mortgage
Graduated payment mortgage
Balloon payment mortgage
Straight term mortgage
The major feature of an adjustable/variable rate mortgage is that the interest rate:
changes as the borrower's income increases
varies according to the capitalization rate
varies one time each year, but Is limited by a capitalization rate
varies according to an agreed-upon market indicator (index)
Should any licensee be accused of fraudulent representation the Georgia Real Estate Commission may:
Publish their name in the newspaper
Conduct an investigation including a review of their books and trust accounts
Go to court to sue the licensee
Not be able to take any action
The right of a water company to lay and maintain water mains along the rear of a lot is called:
An appurtenance
A riparian right
An easement in gross
A right of encroachment
A violation occurred several months ago and was not addressed. A court may determine that the right to take legal action has been lost because of:
Laches
Novation
Recission
Reformation
Which of the following is NOT done by Fannie Mae (FNMA)?
Purchase conventional loans
Sell mortgages to institutions
Buy FHA and VA notes
Originate federal loans
The NW¼ of the SW¼ of the SW¼ of Section 22 contains how many acres?
10
40
30
20
A broker may execute a contract on behalf of her principal when she is a(n):
Agent for the principal
Attorney-in-fact
Attorney-at-law
Trustee for the principal
If a borrower makes monthly loan payments of $612 on an amortized loan, it means that:
the same amount is applied to the principal each month
there will be a balloon payment at some point in the loan
the amount applied to the principal will increase with each payment
there is a lump sum payment at the end of the loan
If the interest rate on a mortgage loan is 11½% and the monthly payment is $1,412, the principal sum would be:
$194,560
$147,339.13
$12,278.26
$148,000
TRID, also known as "Know Before You Owe," mandates that a lender must provide the borrower with the Loan Estimate within what amount of time?
Anytime before closing
One week of loan application
Three business days of loan application
Five days before closing
The covenants that can be found in general warranty deeds include:
seizin, further enjoyment, infinite assurance, against encumbrances, and warranty forever
seizin, quiet enjoyment, against encumbrances, future assurance, and warranty for infinity
seizin, further enjoyment, against encumbrances, further assurance, and limited warranty
seizin, against encumbrances, quiet enjoyment, further assurance, and warranty forever
Which of the following statements apply to ALL appurtenances?
They go with the land
They are joined by accession
They once was personal property
They are easements
The Jacksons sold their home on May 26th and owed a balance of $90,125 on their existing loan at 4.29% interest. Using a 360-day interest year, how did this appear on the seller net form?
A prepaid interest charge of $268.50 due from the Jacksons at closing
An accrued interest charge of $64.44 was due from the Jacksons at closing
A prepaid interest charge in the amount of $279.24 was due from the Jacksons at closing
An accrued interest charge of $279.24 was due from the Jacksons at closing
The essential elements of a valid contract are:
legality of the object, competent parties, offer, acceptance, legal age
competent parties, offer, acceptance, consideration, meeting of the minds
consideration, competent parties, legality of the object, offer and acceptance,
legal age, meeting of the minds, consideration, acceptance
Which is true concerning real estate sales contracts?
A seller can be sued for specific performance if the terms are not performed
A seller must accept the offer if the offeror's terms are exactly in accordance with the listing agreement
The sole remedy for default of the buyer is a suit for specific performance
They must be on a printed form to make them binding
A life tenant may do which of the following?
commit waste on the property
encumber the reversionary interest
lease the property to another person
convey the life estate interest by a will
Members of the Georgia Real Estate Commission are entitled to collect what?
A monthly salary not to exceed $1,500
$25 for each day they perform duties for the Commission
None of the answer choices provided are correct
Standard real estate fees for the length of their tenure
A seller agrees to pay commission at 8% of the sales price and wants to net at least $86,500. What price must the property sale for to achieve the seller's net?
$93,420
$94,100
$94,000
$86,500
The broker of ABC Realty obtained a 6-month exclusive-right-to-sell listing from Carolyn, but did absolutely nothing to market the property for 60 days. Which of the following statements is FALSE?
Carolyn can cancel the listing prior to the 180th day
Carolyn can withdraw the property from the market
The broker has earned a commission
The broker has breached the contract
Bill, Chuck and Todd are joint tenants. Chuck sells his share to Bill and after the title transfer takes place, Bill dies. What percentage of Bill's interest in the property transfers to Todd?
1/3
1/2
2/3
All of it
A fiduciary relationship exists between the listing broker and the seller. The fiduciary ends, however, if the seller:
withdraws the property from the market and formally cancels the brokerage agreement
requests that the listing be placed in the MLS
accepts an offer directly from the buyer
rejects an offer to purchase received through the broker
A property, 50 feet x 137 feet, is listed at $4.50 per square foot with a commission rate of 7¼%. What amount will the seller pay to the brokerage firm?
$1,005.60
$2,234.81
$22,348.12
$10,005.00
All of the following are defined and protected under familial status according to the 1988 amendment of the Federal Fair Housing Act of 1968 EXCEPT:
A sixteen year old domiciled with her mother
An eighteen year old living with his mother
A nineteen year old that is pregnant
A seventeen year old living with a friend who is seeking legal custody
Georgia license renewal fees covering a four-year period are $125.00 for licensees. What is this fee if paid through the Commission's online renewal system?
$100
$110
$170
$45
If the market value of a property is $72,000 and the property is assessed at 67% of value, what are the monthly taxes if the tax rate for the area is $6.50 per $100 of assessed value?
$3,157.38
$4,857.50
$261.30
$48,575.00
Betty Smith took title to property as Elizabeth Smith. When she sold the property, she signed Betty Smith as grantor. The buyer now has:
A cloud on the title
Only color of title
An exception on the deed
Clean title
A buyer wishes to give a post-dated check with an offer. The Georgia broker should:
wait until it can be determined if the check is good before presenting the offer
treat the check as any other check
inform the seller as to the form of the deposit
refuse to accept the offer
Applicants for a salesperson real estate license in Georgia must:
Complete 90 hours of Commission-approved coursework
Be 18 years of age, a resident of Georgia, and have a high school diploma or GED
Plan to take a real estate licensing exam
Be 21 years of age, a resident of Georgia, and have a high school diploma or GED
